Should I Sell My House By Owner?
Should I sell my house by owner? It is one of the most daunting questions that we asked ourselves when selling our house. Truth is there's nothing wrong with selling your house by the owner; it's more fulfilling and hands-on to monitor the sale of your house.
But then again, you can't help but consider other options to make the process smoother and quicker. If you're still confused about whether you should DIY your house sale, here are the advantages and disadvantages to consider before selling your house by owner:
The Advantages of Selling House by Owner
1. You’re the one calling the shots
Since you're making your sale on your own, you have full control of your house. The decision making fully relies on you without having to worry and wait for the other party's confirmation. You are more aware of the ins and outs of the process, which makes you more hands-on with your house's sale.
This is more beneficial as well if you have the first-hand experience of selling a house before. Good thing, there are a lot of resources online that you can follow for more tips and guidelines to parallel the state’s policies when selling a house.
2. You get the full monetary value of your house
The fact that you don't work with other mediators or agents who can take a big chunk of your house sale, you're sure to get your house's full value once the sale is fulfilled. Based on the report made by Investopedia, “the standard real-estate agent’s commission rate is 6% - that’s $15,000 on a $250,000 home.”
That’s a lot of money that you’re losing from just commissions alone. When you sell your house by owner, you get rid of commission expenses and keep the full payment of the house that you sold. That’s a good reason to stay motivated and focus on finding the right buyers.
3. You have more focus on selling your house
Selling your own house and selling somebody else's truly makes a huge difference in the real estate market. You get to dedicate more time and effort when selling your own house because you know there's no one else that can benefit from it other than yourself. You don't mind spending on marketing collaterals, advertisements, and what not to increase the possibility of making a sale.
While real estate agents are helpful, the tendency is, their attention can be divided. They also have other clients to take care of aside from you. That’s also one of the reasons why your house’s sale can still be pending.
4. You have the free will to price your house
As a homeowner, you're the best person that knows how much you have invested in your house over time. It makes sense how you should decide the pricing. A little help from realtors and property assessors can be beneficial as well to help you gauge your total pricing.
But still, at the end of the day, it's your goal that matters the most. You get to set the full price of the house, how much you can only negotiate, and when you need it to be sold.
The Disadvantages of Selling House by Owner
1. The possibility of making incorrect house pricing
Consider the fact that you're not as expert as real estate agents. Some of us might overprice our home, resulting in a pending sale or no sale at all. With the help of a skilled agent, you'll have a better grasp on the real estate market and how your property can keep up.
2. Marketing your house can be a real challenge
Unlike real estate agents, typical homeowners don't have that "large network" to establish a huge marketing pipeline. The crucial part of selling the house is to market it correctly, with the right targeted market. If you're not a marketing individual, this can be a challenging part of the job.
Selling and marketing the house needs a lot of research, work, and dedication to ensure you're reaching out to potential buyers. Usually, the best real estate agents have their websites that are prospect magnets.
3. You have to qualify the buyer on your own
You are on your own to investigate and verify if these potential buyers are qualified to buy a house. This is a step that you could have skipped when you hired a real estate agent. They have their process to verify buyers and avoid wasting time with unqualified ones swiftly.
Also, you and your family's safety can be at stake when you welcome bad people who pretend to be buyers. When you have your agent, they can filter serious inquiries from fishy ones before entertaining them for a house tour.
4. You need to be well adept with legal matters
If you're not keen on paperwork and legal cases, this can be real work for you. Before you put up your house for sale, you have to check if you're even legal to do so. You don't want to get in trouble along the way just because you didn't do enough research about it.
Furthermore, you should consider that every state or country is different when it comes to selling a house. The best way to avoid possible lawsuits in the future is by talking to a lawyer or doing research about state disclosure laws before selling your house.
Key takeaways
Ask yourself if you're committed to getting hands-on with selling your house on your own. Remember, it's a strenuous task to fulfill, and it might take a toll on you if you're also juggling it with your job or other responsibilities. That's the reason why there are real estate agents because selling a house is a full-time job, to begin with.
However, if you have the time, resources, and skill to sell your house and you have done this before, go ahead. You'll surely reap what you sow as long as you are knowledgeable and prepared enough with the process of selling your house.